Firm opening seen on positive global cues, oil rebound

Meanwhile, encouraging US macrodata and Fed comments are likely to uplift the markets

Markets are likely to open the session on a higher note mirroring a firm trend in the global peers helped by a sharp recovery in the crude oil prices. Meanwhile, encouraging US macrodata and Fed comments are likely to boost sentiment.

"Nifty is expected to open with a gap up and likely to witness up move during the day. Technically, Nifty is trading in a very volatile manner and stuck in the range of 7000-7210 levels from last 2-3 trading sessions. Today, Nifty is likely to continue its bounce back rally towards 7140/7180 levels. On the flip side, it has a support at 7080/7040. Overall, the view is cautious as long as it doesn’t give the breakout of 7210 levels, but stock specific trading is recommended and bounce back rally is likely to continue. Nifty has an immediate resistance at 7140 and on a decisive close above expect rise to 7180/7210 levels," Nirmal Bang Securities said in a note.

Overnight in the US, minutes of the US federal Reserve discussions yesterday indicated that the Fed to defer a hike in interest rates in the near future taking into account the developments regarding the global economy. Also, the industrial production for January rose 0.9%, while capacity utilization was 77.1%. Tracking them, the Dow Jones industrial average and S&P 500 posted their first three-day win streak of 2016 and the the Nasdaq composite outperformed, closing 2.2 % higher.

In line with US markets and firm finish in the European peers, Asian markets are trading higher with Hang Seng and Nikkei gaining over 2% each.

CRUDE OIL

US oil prices jumped almost 8% on Wednesday after a fall drop in crude inventories. Furthermore, oil futures bounced back from their lowest levels after Iran voiced support for a move led by Russia and Saudi Arabia to freeze production in an oversupplied market.

STOCK IN FOCUS

Motherson Sumi is in advanced talks with billionaire investor Wilbur Ross to buy one of his portfolio companies International Automotive Components (IAC) Group for $750-800 million. A win-win deal buyout is likely to help Indian auto component maker get access to the US market and expand its customer base.

Britannia Industries is likely to invest Rs 900 crore to set up fresh manufacturing and research and development facilities over the next two years, in what will be its biggest single tranche of investments in a two-year time frame. 

The business relationship between Ashok Leyland and its joint venture (JV) partner Japanese auto major Nissan has turned sour with the Chennai-based commercial vehicle major raising a series of allegations against its Japanese partner, and moving court for a legal remedy. Nissan, on the other hand, has said it is still open to reaching an amicable solution.

As part of its balance sheet clean-up exercise, state-owned Punjab National Bank decides  to sell up to Rs 3,000-crore bad loans to asset reconstruction companies (ARCs) in the fourth quarter.

IRB Infrastructure Developers expects to sign a concession agreement for the ambitious Rs 10,050-crore Zozila Pass tunnel in Jammu and Kashmir by March.

After Century Textiles, the Aditya Birla group is raising its stake in Kesoram Industries to 50% from the present 46% via preferential share issue.